Ireland’s summer tourism season in 2024 proved disappointing for many industry operators, with a significant number facing a decline in visitor numbers compared to the previous year. A survey of 1,002 tourism businesses conducted by Fáilte Ireland revealed that over half (53%) experienced a drop in customer traffic, while only 24% saw an increase. This downward trend was observed across all regions and markets, impacting both domestic and international tourism. Even the North American market, a key contributor to growth in 2023, fell short of expectations this year.
Several factors contributed to this downturn. Unfavorable weather conditions played a significant role, with more than half of the surveyed businesses citing this as a major challenge. Concerns over reduced disposable income among customers were also voiced by half of the respondents. The rising cost and limited availability of tourist accommodation, particularly in popular destinations, added further pressure. Escalating operating expenses, including payroll, energy, and insurance, compounded the issue, leaving businesses facing shrinking profit margins amidst reduced visitor numbers.
The impact on different sectors varied. While 84% of food and beverage businesses and 78% of hotels and guesthouses reported a decline in profitability, self-catering businesses bucked the trend, with over a third reporting an increase in visitors. However, the overall picture remained bleak for many, with over 60% of food and drink businesses and activity providers reporting a decline in business.
Looking ahead to the remainder of 2024, industry operators remain cautious. Half anticipate a further decrease in business levels, with only 19% expecting growth and the remaining third predicting steady levels. This cautious outlook extends across all regions and markets.
Despite the challenges, some glimmers of hope remain. Many operators are finding solace in the loyalty of repeat visitors, while others are exploring new marketing strategies, investing in their businesses, or diversifying into untapped markets. However, the ongoing rise in operating costs remains a critical concern for businesses moving forward.
